Re: COVID has driven Americans to bank $1.6 TRILLION in savings
Do you know this word - diversification?
So - a financial pillow is not a bundle of dollars. This is, for example, a "basket consisting" of a bundle of dollars
a bundle of euros, several (as you understand not very large) bars of gold / platinum, it can be jewelry (although I don't really like this option), now cryptocurrency has also been added. Although it can be real estate bought in a stable country, the rent of which will give you passive income. In this case, the fall of one as a rule does not lead to the fall of other assets, which means that in total you lose the minimum. Just be smart about building your portfolio.
Diversification is very important, as long as you’re doing right. Sometimes it can be a nightmare, because I have seen people who end up diversifying their assets wrongly and at the end of the day when they check their portfolio they will notice that almost everything, if not all, that they have invested in is on loss. Can be really bad if you don’t know what you’re doing and end up not making the right choice.So - a financial pillow is not a bundle of dollars. This is, for example, a "basket consisting" of a bundle of dollars
a bundle of euros, several (as you understand not very large) bars of gold / platinum, it can be jewelry (although I don't really like this option), now cryptocurrency has also been added. Although it can be real estate bought in a stable country, the rent of which will give you passive income. In this case, the fall of one as a rule does not lead to the fall of other assets, which means that in total you lose the minimum. Just be smart about building your portfolio.But if you do it right, you’re going to be the one who would benefit a lot from it. People who do proper research before selecting assets to diversify with usually make high success rate, like 90%. And the good thing about diversification is that one those coins might have a really huge return on your investment than you expected.
I agree that any action with finance/cryptocurrencies should be balanced and thoughtful. As we understand it, this is a market where there are no guarantees, where there is manipulativeness and speculation, where there is the possibility of manual control. Therefore, diversification should also be thought out. Diversification does not mean taking bitcoin, swapping most of it for a bunch of different alternative cryptocurrencies, and waiting for a profit. This means choosing the most promising cryptocurrencies, distributing existing assets into parts, and exchanging them for selected cryptocurrencies. And what is important is to constantly monitor the situation and adjust the portfolio of assets.